London Office Crane Survey Growing confidence

Transcription

1 London Office Crane Survey Growing confidence Winter 2013 A Deloitte Insight report

2 Market overview Winter 2013 Office space under construction Total U/C (sq ft) Let U/C (sq ft) Available U/C (sq ft) City 5,134,000 2,086,000 3,048,000 Docklands 540, , ,000 King s Cross 782, , ,000 Midtown 1,061, , ,000 Paddington Southbank 731, , ,000 West End 1,461,000 47,000 1,414,000 Total 9,709,000 3,375,000 6,334,000 Office space under construction Million sq ft City Docklands King s Cross Midtown Paddington Southbank West End 12 months ago (Winter 2012) 6 months ago (Summer 2013) Today (Winter 2013) 2

3 This survey records growing confidence from both developers and occupiers. Development in the central London office market continues apace with 28 new schemes starting since our last survey and the highest volume of space completing for over three years. Construction in the City has risen for the sixth consecutive report, and has now reached the highest point for over five years. The Midtown market is also seeing strong activity, with development up 47%, on the back of a rise of 20% in our last report. Interestingly, despite robust levels of tenant demand, the West End has seen construction fall. Activity is down 36% on just six months ago, due, in part at least, to a seven year high in scheme completions this year. The upshot is that construction in the West End has fallen to its lowest point in three years. These divergent trends, combined with a number of significant completions over the last six months, mean that the total volume of office space under construction across central London has remained flat. This survey has recorded 9.7 million sq ft currently being built: a 1% fall on the results of six months ago. Positively for developers, occupational demand for office space is improving. The latest Deloitte CFO survey records notably improved sentiment amongst some of the UK s largest businesses with CFOs now seeing fewer risks in the economy and greater opportunities for expansion, both in terms of capital expenditure and hiring. This mirrors current data which shows that more deals are completing in the London office market and take-up of Grade A space is now running above long-term average levels. Importantly, the market has begun to see the reemergence of demand from larger occupiers. The average letting deal at schemes recorded in this survey is 83,000 sq ft, more than double that of 12 months ago. The growth in occupier demand is also evident when looking at the volume of space which has been let prior to completion of the development in this survey: of the 2.6 m sq ft that has finished over the last six months, only 1 million sq ft (43%) remains vacant. These dynamics will continue to fuel the confidence being shown by investors and spur additional development activity. It is our view that the market is entering a period of stronger pre-letting activity, with developers increasingly able to attract tenant commitments ahead of a construction start. Indeed, analysing these latest results and market sentiment, and looking at the number of sites which have all the elements ready to start construction, we expect the number of new projects to continue to grow over the coming months. Market by numbers construction starts 28new 71 Total number of development schemes 9.7m sq ft of office space under construction Change in construction activity on six months ago 1% 35% of space under construction is let Completed office space in the past six months totals 2.6m sq ft Crane Survey London Office Winter

4 The City A further rise in construction, to the highest level for five years, reflects the growing confidence in the City market. Construction continues to rise, up 15% over the last six months. With nine new starts totalling 1.3 million sq ft, total development has exceeded 5 million sq ft for the first time since Activity has picked up from the record low volumes seen in 2010, but still remains some way below the recent peak of 8.2 million sq ft recorded in this survey in This increase in construction is a direct result of improving sentiment regarding the City of London office market. Developer confidence has been buoyed by reducing levels of available Grade A space (now at a five year low, having fallen from 4.0 m sq ft in mid to 1.4 m sq ft today). The consequence of this fall is that supply shortages are beginning to be seen in a number of unit sizes and locations. For example, our database shows just four completed buildings now being marketed that can accommodate a requirement of 100,000 sq ft or more. Indeed, over the last six months a growing number of deals have completed on whole buildings rather than a floor-by-floor basis and we predict that Grade A take-up for 2013 will reach its highest level for three years. It is worth noting, however, there remains a much lower level of activity in the smaller size bands as companies without large scale lease events continue to exercise caution. Despite this, current supply and demand dynamics are beginning to filter through into rental growth, with August recording the first increase in City prime rents (based on an average 10,000 sq ft mid-floor) over three years: up 3% to per sq ft. The range of rents being paid for new buildings continues to vary substantially depending on location, specification and size (including height) but with pressure on these prime rents to rise we expect further increases to follow. Most importantly, tenant demand is beginning to show real signs of life. Take-up this year has been boosted by a number of large transactions from the legal and insurance sectors, as well as technology and media firms. Development pipeline Million sq ft Completed Available U/C Let U/C 4

5 The results of the latest survey show that the reducing levels of completed Grade A supply is prompting greater leasing activity on schemes under construction, reducing the delivery of available space completing in This, alongside a quickly closing window to deliver new-build schemes in 2015, means it is looking increasingly likely that the City market will experience an increasingly tight volume of supply of larger units over the next months. With indications that City tenant demand is improving, in particular driven by those companies with significant lease events, this shortage should drive further rental growth. This in turn will encourage the delivery of new refurbishment projects into 2015 and new-builds into 2016 and The City volume under construction % 41% 59% Let U/C Available U/C The City number of new starts per Crane Survey Q Q Q Q Q Q Q3 Market by numbers 9 new construction starts 5.1m sq ft of office space under construction 23 Total number of development schemes 15% Construction activity up on six months ago by 222k sq ft average size of a scheme Completed office space in the past six months totals 647k sq ft Crane Survey London Office Winter

6 West End Construction activity drops 36% in this survey as West End completions hit a seven year high. We have seen 10 new starts this survey, double the number recorded six months ago and an addition of 400,000 sq ft to the development pipeline. However, this has not been enough to offset the large amount of space completed this year will see 1.5 million sq ft of office space delivered into the West End, which is, by some margin, the largest amount to be completed since Of this, the majority (1.2 million sq ft) has finished over the last six months. As a result, construction has fallen by 36% since our last survey. With just 1.5 million sq ft underway, development activity is now at the lowest level since This comes at a time when West End Grade A availability has reached its highest point for seven years. Does this development slowdown therefore reflect concerns of oversupply? We do not believe so. Availability data has been boosted by the completion of a few large schemes in recent quarters and so, while this may temper rental growth in some locations, it is not reflective of the shortages that are apparent in others. Importantly, only a third of the floorspace completed in this survey is still available. The rest has been snapped up by a mix of financial, professional and TMT occupiers pre-completion. The slowdown in development is therefore more likely to relate to the lack of sites for office development than oversupply. Another factor lessening the potential for oversupply is that the focus of new construction activity has shifted away from the recent development hotspots of Victoria and North of Oxford Street, with 70% of the new space recorded this survey being built in Mayfair & St James s. In total, 42% of space under construction in the West End is now concentrated in this market, as opposed to just 23% twelve months ago. It appears this shift in the location of activity is not due to a lack of tenant demand for units in Victoria or North of Oxford Street, which continue to see interest from a range of tenant sectors, but rather the return of demand for super-prime space from hedge funds, private equity and wealth management businesses. Development pipeline Million sq ft Completed Available U/C Let U/C 6

7 This has been reflected in the high rents being paid, with deals in excess of 120 per sq ft recorded for the very best space in Mayfair, and 130 per sq ft in St James s. The new schemes in this survey cater for this type of smaller volume, high value demand: our analysis shows that the average size of schemes being built in Mayfair is under half the size of schemes under construction in the North of Oxford Street submarket. The West End volume under construction % 3% The combination of declining construction and strengthening occupier demand will begin to temper the rising availability. Factor in the continued removal of stock for residential conversion and the West End is positioned for further rental growth, providing additional opportunities for developers to deliver space in an improving landlord s market. 97% Let U/C Available U/C West End number of new starts per Crane Survey Q Q Q Q Q Q Q3 Market by numbers 10 new construction starts 1.5m sq ft of office space under construction Total number of development schemes Change in construction activity on six months ago 23-36% 65k sq ft average size of a scheme Completed office space in the past six months totals 1.2m sq ft Crane Survey London Office Winter

8 Midtown Activity increases further in Midtown. This latest survey records a 47% rise in Midtown construction to 1.1 million sq ft. This follows a 20% upturn six months ago: development activity in Midtown is clearly growing rapidly! There have been eight new starts this survey, totalling 554,000 sq ft. So why are developers so keen to build here? There are three main reasons: low availability, strong tenant demand and, for the northern part of the market at least, Crossrail. Alongside this longer-term promise of greatly improved connectivity, the underlying market fundamentals are clearly very appealing for developers at the present time. Combining the new starts with the existing space under construction means that one million sq ft is scheduled for completion before 2015, almost three times the average annual volume of Grade A take-up. However, availability of existing supply is at a six year low, while take-up is running at double its average rate, therefore this amount of space completing looks like good news for occupiers with active requirements. Demand is primarily coming from the legal sector, but there have also been significant transactions from the footloose media and technology sectors. The rebound in construction recorded in this survey shows that developers have responded to the low levels of space delivered in 2012 and this commitment is expected to continue with a number of developers gearing up to start schemes over the next 12 months. Market by numbers 8new construction starts 1.1m sq ft 14 schemes of office space under construction currently under development Average size of a scheme 76k sq ft Construction activity is 51% up on six months ago Completed office space in the past six months totals 206k sq ft 8

9 Southbank Early-letting activity continues at pace on the Southbank. Take-up of office space on the Southbank in 2013 is already more than double the 10 year average, with the buoyant media and technology sectors accounting for two thirds of these deals. The majority of this demand is for new Grade A space: The Place, London Bridge completed this survey, fully let to News International; Sea Containers which completes in Q and is already predominantly let to Ogilvy and 240 Blackfriars Road has attracted United Business Media. All are significant media and technology tenants. The survey has recorded one new construction start, South Bank Tower, which will deliver 217,000 sq ft of new space in 2015 and is, at the moment, the only site scheduled for completion post With construction activity falling this survey (down 26%) and letting activity on Grade A space running significantly above average, we expect further interest from developers in this hot London submarket Market by numbers 1new construction start Average size of a scheme 244k sq ft 731k sq ft 3 schemes currently under development of office space under construction Change in construction activity on six months ago Completed office space in the past six months totals 26% 468k sq ft Crane Survey London Office Winter

10 King s Cross Construction levels flat, but appetite from occupiers continues. After a flurry of new starts six months ago there has been no new development activity since our last survey. Despite this, King s Cross continues to advance as an emerging office location. There are seven buildings currently under construction, totalling 782,000 sq ft, with a number of pre-lets in place and new tenants agreeing terms on buildings already underway. Indeed, our research shows that less than 40% of this space is available to let. Market by numbers: King s Cross 0new construction starts Since the last survey Google has moved a step closer to starting construction of its new headquarters at Argent s King s Cross Central, with Camden Council granting planning consent in September. Construction is scheduled to start on the 2.4-acre site in early 2014 with completion scheduled for k sq ft of office space under construction 2% decrease in construction volume in six months 7 schemes under construction 10

11 Other markets Docklands Canary Wharf Group s 25 Churchill Place remains under construction in Docklands and is scheduled for delivery in early European Medicines Agency s pre-let of 250,000 sq ft kicked started this new development, leaving 290,000 sq ft of space available to let. Although plans for the site have not been officially announced yet, enabling works are continuing at the Riverbank House development, once earmarked for a 1.5bn office scheme. Market by numbers: Docklands 0new construction starts 540k sq ft of office space under construction 0% 1 scheme under construction increase in construction volume in six months Paddington There have been no office construction starts in Paddington since the last survey, which saw the completion of Summit House on Praed Street. However, Paddington has featured heavily in the property press over the last six months due to British Land s acquisition of the majority of Paddington Central, the 1.2 million sq ft office-led mixed use estate. British Land is now able to develop 4 and 5 Kingdom Street which currently have consent for around 355,000 sq ft of offices. Market by numbers: Paddington 0new construction starts 0% increase in construction volume in six months 0 schemes under construction 0 completed in the last six months Crane Survey London Office Winter

12 Capital markets Lending crisis eases but the lack of development sites continues to restrict investment volumes. Investment demand for central London office stock remains very healthy, with 12bn of transactions taking place during the first three quarters of the year. As was the case six months ago, much of this activity has been from a wide variety of overseas investors, attracted by a range of factors including the safety and liquidity of the market, and the scope for capital preservation. In addition, recent months have seen the re-emergence of interest from UK property companies, funds, and institutions, who have, until now, been largely absent from the market. With a significant weight of both overseas and domestic capital targeting a limited supply of assets, central London office yields have begun to approach pre-crisis lows: prime yields in the City currently stand at 4.50% with West End yields at 3.75%. The relative lack of new construction during the past few years has only served to exacerbate the scarcity of prime stock, adding to the downward pressure on yields. The combination of strong investor demand, rising capital values, and improving rental prospects has not been lost on developers. Competition for potential development sites is fierce, with the depth of bidders for suitable opportunities highlighting the desire to purchase and redevelop in London. Despite compelling reasons to develop, however, for those reliant on finance, the environment remains significantly more difficult than it was pre-crisis. Nevertheless, while permitted loan to cost ratios are now lower, and the process of obtaining development finance still difficult, the availability of bank debt is gradually improving. In addition, some developers are utilising other ways to raise finance, either via joint ventures, alternative lenders, or through the issue of bonds. Fundamentally, however, the signs of recovery seen in central London s occupier market, coupled with continued investor interest, means that capital providers are gradually becoming comfortable with one of the key risk factors in the development process tenant demand. This should lower one of the hurdles to raising finance for further development activity. Consequently, we envisage a continuation of the strong investment demand seen for existing assets, as well as for potential development sites. 12

13 SCHEMES UNDER CONSTRUCTION SQ FT 9.7m 71 OF OFFICES UNDER CONSTRUCTION Key office developers (by amount of space under construction) Key office developers (by amount of space under construction and available to let) 1. Land Securities 1. Land Securities 2. Canary Wharf Group 2. Canary Wharf Group 3. British Land 3. Exemplar 4. Stanhope 4. Aldgate Developments 5. King s Cross Central Limited Partnership 5. Kato Kagaku & Co 6. Blackstone 6. Resolution Property 7. Exemplar 7. British Land 8. Bloomberg 8. CIT 9. Aldgate Development 9. Quadrant Estates 10. Kato Kagaku & Co 10. London & Regional Properties AVERAGE SIZE OF CITY WE 223K SQ FT 64 Office space under construction in sq ft TOTAL 9,709,000 WEST END SOUTHBANK PADDINGTON 0 731,000 1,461,000 MIDTOWN 1,061,000 Crane Survey London Office Winter KI 7

14 Outlook 2013 has seen a more robust UK recovery than many had expected, and the London economy has been a key driver. Along with better economic data and stronger business sentiment, a mood of greater optimism has fed through into higher levels of take-up in central London s office market. In addition, there has been a continued shift in the source of tenant demand, with technology, media and telecoms businesses and the professional sector being the most active, in place of financial services. The upshot of the improving occupier market is that, with recent years delivering low volumes of new office space, availability has started to fall. Indeed, some markets, such as Midtown and the City, are now experiencing Grade A availability at the lowest level for over five years. These are clearly positive trends for those developers already building space, as well as those that might be about to begin. The latest survey reflects this, with a flurry of new starts recorded, and development volumes remaining at a four year high. The results show that a relatively high proportion of space is scheduled for delivery in million sq ft is currently earmarked to complete, which would be the largest amount in a single year since However, the impact of this amount of space hitting the market will be tempered by the fact that 2 million sq ft has already been let. Indeed, signficant leasing success has been recorded on the space which has completed construction in this survey, only a third has come to the market available to let the remainder was taken by occupiers whilst construction was still underway. This is a marked increase from twelve months ago, when 72% was available upon completion. With this trend expected to continue, the amount of available space completing in 2014 will reduce further over the next six months. These dynamics are likely to put upward pressure on rents, following a number of years where little movement has been seen, albeit some markets and building types will perform significantly better than others. This expectation of growth, along with continued appetite from investors for prime stock and forecasts promising a further improvement in the economy, is likely to entice developers to begin new schemes in favoured locations over the next 6-12 months, both on a speculative basis and, increasingly, driven by the return of pre-letting activity. 14

15 FIVE LARGEST AVAILABLE BUILDINGS UNDER CO 1234 Central London development pipeline Million sq ft &2 NEW LUDGATE ALDGATE TOWER 20 FENCHURCH ST Completed Available U/C &2 FITZROY PLAC 2016 Let U/C Leasing activity on space under construction 27% FINANCIAL 38% TMT Crane Survey London Office Winter

16 Development table Post code Developer Tenant Completion date Total space sq ft Space available sq ft No. Scheme Paddington Under Construction Total 0 0 Paddington Completed Total 0 0 West End Under Construction 1 39 Victoria Street SW1 British Land Q ,000 88, Oxford Street W1 AXA REIM Q ,000 10,000 3 Marble Arch House W1 British Land/Portman Estate Q ,000 60, Davies Street W1 Grosvenor Estates/Stow Q ,000 27, Stephen Street (Phase 1) W1 Derwent London BrandOpus LLP Q ,000 5,000 6 Charlotte House, Windmill Street W1 Bramblewell Ltd The Mill Q , St James s Square SW1 Exemplar Q ,000 15, St James s Square SW1 Exemplar Q , , New Burlington Street W1 Exemplar/Crown Estate Q ,000 97, Brompton Road SW1 Cheval Group Q ,000 10, Walmar House, Regent Street W1 Great Portland Estates Q ,000 54, Soho Street W1 Dukelease Properties/British Q ,000 17,000 Airways Pension Trust Savile Row W1 Allied London Q ,000 15, Stephen Street (Phase 2) W1 Derwent London Q ,000 63, St James Square SW1 Green Property Q ,000 65, & 2 Fitzroy Place W1 Exemplar/Aviva/Kaupthing Q , ,000 Bank Grosvenor Street W1 Grosvenor Estates Q ,000 40, Carnaby Court 2, Kingly Street W1 Shaftesbury Carnaby Q ,000 13, Grosvenor Street W1 Grosvenor Estates Q ,000 15, Ampersand, 180 Wardour Street W1 Resolution Property Q ,000 64, St James s Street SW1 Lothbury Investment Managers Q ,000 23, Zig Zag Building, Victoria Street SW1 Land Securities Q , , New Burlington Place W1 Exemplar/Crown Estate Q , ,000 Total 1,461,000 1,414,000 West End Completed Buckingham Gate SW1 Land Securities World Fuel Services, Schlumberger, Rolls Q , ,000 Royce Bentinck Street W1 Howard de Walden Estates Q ,000 35, Portman Square W1 British Land Saudi Aramco, Aspect Capital Q ,000 55, Brock Street, Regents Place NW1 British Land Q ,000 21, Brock Street, Regent s Place NW1 British Land Debenhams Plc, Manchester City Ltd, Q ,000 25,000 Whitefoord LLP, Facebook, Twitter Wigmore Street W1 Great Portland Estates Lane Clark & Peacock, Pyrford International, Q ,000 28,000 Bridgepoint Advisers Berkeley Square W1 Philips de Pury Philips de Pury Q ,000 26, King Street SW1 Standard Life Tamasek Holdings Q ,000 36, Wardour Street W1 Walbrook Land/Legal & Q ,000 33,000 General 33 1 Eagle Place, 200 Piccadilly SW1 Stanhope/Crown Estate/Hoopp Haymarket Financial, Schulte Roth & Zabel Q ,000 36,000 International 34 1 Page Street SW1 Derwent London Burberry Q , Maddox Street W1 Joint London Holdings Q ,000 12, Hanover Street W1 Morgan Capital Partners Q ,000 25,000 Total 1,195, ,000 Midtown Under Construction 37 New Fetter Place East & West EC4 Kirkbi AS Real Estate Q ,000 93, Euston Road NW1 Romulus Q ,000 18, Tudor Court, 6 8 Bouverie Street EC4 Tudor Court Ltd Q ,000 47, Carmelite House, 50 Victoria EC4 Orion Capital Managers/ Q , ,000 Embankment Quadrant Estates Bloomsbury Way WC1 London & Regional Properties Q , , Turnmill, 63 Clerkenwell Road EC1 Derwent London Publicis Group Q , One Mabledon Place WC1 Stanhope Q ,000 86, Bush House, Aldwych Quarter WC2 Kato Kagaku & Co. Q , , Strand House, Aldwych Quarter WC2 Kato Kagaku & Co. Q ,000 85, King House, Aldwych Quarter WC2 Kato Kagaku & Co. Q ,000 55, Melbourne House, Aldwych Quarter WC2 Kato Kagaku & Co. Q ,000 35, Chancery Lane WC2 Raingate Ltd Q ,000 49, Cliffords Inn, Fetter Lane EC4 CLS Holdings Q ,000 28, Chancery Lane WC2 Derwent London Publicis Group Q ,000 0 Total 1,061, ,000 Midtown Completed 51 Lever Building, 85 Clerkenwell Road EC1 GE Capital Real Estate/ Q ,000 30,000 Endurance Land 52 One Southampton Street WC2 Aviva Investors Q ,000 26, Bedford Street WC2 LaSalle Investment Q ,000 32, Africa House, Kingsway WC2 Freshwater Q , ,000 Total 206, ,000 City Under Construction 55 Monument Place, 24 Monument Street EC3 Rockspring Property/Alchemy Q ,000 75, Bevis Marks EC3 AXA REIM/MGPA/CORE Q , , One Commercial Street E1 Redrow Q ,000 97, Finsbury Square EC2 Pembroke Real Estate Q , , The Worship, 9 Worship Street EC2 Highgate Properties Q ,000 16,000 16

17 Post code Developer Tenant Completion date Total space sq ft Space available sq ft No. Scheme Queen Victoria Street EC4 QV Unit Trust Q , , Lombard London, (67 Lombard Street) EC3 Viridis Real Estate Q ,000 87, Gresham Street EC2 City of London Q ,000 40, The Banking Hall, 8 10 Moorgate EC2 Moorgate Property Unit Trust Q , , Fenchurch Street EC3 Land Securities/Canary Wharf Group Markel International, RJ Kiln, Royal Sun Alliance, Liberty Mutual Insurance, Liberty Syndicates Insurance, Ascot Underwriting Q , , Moorgate Exchange, 72 Fore Street EC2 MGPA/CarVal/Quadrant Estates Q , , Aldermanbury Square EC2 EPIC Ltd Q ,000 65, Cheapside EC2 Amsprop Q ,000 39, Leadenhall Building, 122 Leadenhall EC3 British Land/Oxford Properties Aon, Amlin Q , ,000 Street Cheapside EC2 Quadrant Estates/Orion Capital Q ,000 87,000 Managers/City of London/ CarVal Investors 70 Bishops Court, Artillery Lane E1 Henderson Global Investors Q ,000 49, Wood Street EC2 Orchard Street Investment Q ,000 65,000 Management 72 Alphabeta, 14 Finsbury Square EC2 Resolution Property Q , , Aldgate Tower E1 Aldgate Developments Q , , Mark Lane EC3 Mitsui Fudosan/Stanhope Miller Insurance Services Q ,000 84, Broadgate EC2 British Land/Blackstone UBS Q , &2 New Ludgate EC4 Land Securities Q , , Bloomberg Place EC4 Bloomberg/Stanhope Bloomberg Q ,000 0 Total 5,134,000 3,048,000 City Completed Queen Victoria Street EC4 Beltane Asset Management Q ,000 30, One St Paul s, 1 3 Creed Lane EC4 AXA REIM Genesis Oil & Gas Consultants Q , Finsbury Circus House, 10 South Place EC2 Union Investment Real Estate/ Q , ,000 CORE Queen Street EC4 London & Oriental Q ,000 45, Bishopsgate EC2 Henderson Global Investors Q ,000 57, Leonard Street EC1 London Square Developments Q ,000 20, Sixty London, Holborn Viaduct EC1 AXA REIM/Favermead Amazon Q , City Tower, 40 Basinghall Street EC2 Great Portland Estates/ Q ,000 84,000 Starwood Capital Total 647, ,000 Southbank Under Construction 86 Sea Containers, Upper Ground SE1 Archlane Ltd Ogilvy, Puma Q ,000 38, Blackfriars Road SE1 Great Portland Estates/ United Business Media Q , ,000 Ropemaker Properties 88 South Bank Tower, Stamford Street SE1 CIT Q , ,000 Total 731, ,000 Southbank Completed 89 The Crane Building, 22 Lavington SE1 Dorrington Plc Q ,000 48,000 Street 90 The Place, London Bridge SE1 Sellar Property Group/Qatar News International Q ,000 0 National Bank Total 468,000 48,000 King s Cross Under Contruction 91 Regeneration House N1C King s Cross Central Limited The Art Fund Q ,000 0 Partnership 92 One Pancras Square N1C King s Cross Central Limited Q ,000 55,000 Partnership 93 Dance Studio. Regent Quarter N1 P&O Estates (IPOE)/Henderson Macmillan Publishing Group Q ,000 0 Global Investors 94 Five Pancras Square N1C King s Cross Central Limited Camden Council Q ,000 0 Partnership 95 Two Pancras Square N1C King s Cross Central Limited PRS For Music Q ,000 78,000 Partnership 96 Seven Pancras Square N1C King s Cross Central Limited The Office Group Q ,000 0 Partnership 97 Six Pancras Square N1C AXA REIM/BNP PRE BNP Paribas Q , ,000 Total 782, ,000 King s Cross Completed 98 The Stables, Regent Quarter N1 P&O Estates (IPOE)/Henderson Macmillan Publishing Group Q ,000 0 Global Investors 99 Printworks, Regent Quarter N1 P&O Estates (IPOE)/Henderson Macmillan Publishing Group Q ,000 0 Global Investors Total 48,000 0 Docklands Under Contruction Churchill Place E14 Canary Wharf Group European Medicines Agency Q , ,000 Total 540, ,000 Docklands Completed Total 0 0 Red text indicates new starts this survey Crane Survey London Office Winter

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19 Definitions Time period: April September 2013 Size minimum: 10,000 sq ft Construction type: New build construction or significant/comprehensive refurbishment work to have started, demolition stages not included Download the new London app With the future of London literally at your fingertips, the New London App is a must have for investors, property owners, developers or occupiers, within the UK and internationally. There is simply no other tool in the market with the capability to showcase London s offer in this way and it is set to revolutionise how the industry goes to market. London Offices Crane Survey data now added. Crane Survey London Office Winter

20 Matthew Elliott City Agency Jon Milward Development Jamie Olley City Investment Stephen Peers West End Agency Anthony Duggan Head of Research Ann Ibrahim Research Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited ( DTTL ), a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of DTTL and its member firms. Deloitte LLP is the United Kingdom member firm of DTTL. This publication has been written in general terms and therefore cannot be relied on to cover specific situations; application of the principles set out will depend upon the particular circumstances involved and we recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this publication. Deloitte LLP would be pleased to advise readers on how to apply the principles set out in this publication to their specific circumstances. Deloitte LLP accepts no duty of care or liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication Deloitte LLP. All rights reserved. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC and its registered office at 2 New Street Square, London EC4A 3BZ, United Kingdom. Tel: +44 (0) Fax: +44 (0) Designed and produced by The Creative Studio at Deloitte, London A